There's no way that I can think of off the top of my head for an addin to monitor a GPTool. The Addin can call it, but once the tool is called, the GPTool is not reporting anything back to the environment that you can really act on.
You could just program the buffer into the addin with arcpy.Buffer_analysis though. If you want the user to be able to set the buffer parameters themselves, you could just use comboboxes to allow them to enter the values/parameter choices, then pass those values into the arcpy.Buffer_analysis
If you're really stuck on doing it by calling the GPToolDialog, the only other way I could think of doing something like this would be to instead delete the point whenever the dataframe extent changes. This wouldn't delete the point as soon as the tool was cancelled, but as soon as you panned or zoomed, resulting in a different extent, it would.